BILL NUMBER: AB 974	CHAPTERED  07/19/00

	CHAPTER   130
	FILED WITH SECRETARY OF STATE   JULY 19, 2000
	PASSED THE ASSEMBLY   JUNE 29, 2000
	PASSED THE SENATE   JUNE 22, 2000
	AMENDED IN SENATE   JUNE 8, 2000
	AMENDED IN ASSEMBLY   APRIL 5, 1999

INTRODUCED BY   Assembly Member Papan

                        FEBRUARY 25, 1999

   An act to amend Sections 82033, 82034, 84200, 84202.5, 84202.7,
84203.5, 87103, 87206, 87207, 89511, and 91005 of the Government
Code, relating to the Political Reform Act of 1974.

      e law without Governor's signature. Filed with
Secretary of State July 19, 2000.)


	LEGISLATIVE COUNSEL'S DIGEST


   AB 974, Papan.  Political Reform Act:  monetary limits.
   (1) Under the existing Political Reform Act of 1974, public
officials and designated employees of public agencies are required to
annually file a written statement of the economic interests they
possess during specified periods.  Existing law requires various
economic interests, such as interests in real property and
investments, to be reported in those statements if the fair market
value of the interest is of a specified minimum monetary amount.
   This bill would increase from $1,000 to $2,000 the minimum
monetary amount of interests in real property and in investments
required to be reported in those statements.
   Existing law prohibits a public official at any level of state or
local government from making, participating in making, or in any way
attempting to use his or her official position to influence a
governmental decision in which he or she knows or has reason to know
he or she has a financial interest.  Existing law provides that a
public official has a financial interest in a decision if it is
reasonably foreseeable that the decision will have a material
financial effect, distinguishable from the effect on the public
generally, on any business entity in which the public official has a
direct or indirect investment worth $1,000 or more, on any real
property in which the public official has a direct or indirect
interest worth $1,000 or more, or on any source of income, except
gifts or certain loans, aggregating $250 or more in value provided
to, received by, or promised to, the public official within 12 months
prior to the time the decision was made.
   This bill would increase from $1,000 to $2,000 for both
investments in business entities and interests in real property, and
from $250 to $500 for amounts from sources of income, the minimum
values that establish financial interests of a public official for
purposes of his or her disqualification in making, participating in,
of influencing, those governmental decisions.
   This bill also would increase the minimum amounts of contributions
required to be reported in specified statements of committees.
   The bill would make other technical nonsubstantive changes to
existing law.
   Existing law provides that any person who makes or receives a
contribution, gift, or expenditure in violation of specified
provisions of law is liable in a civil action brought by the civil
prosecutor or by a person residing within the jurisdiction for an
amount up to $500 or 3 times the amount of the contribution, gift, or
expenditure, whichever amount is greater.
   This bill would increase from $500 to $1,000 the minimum amount of
civil penalty that may be imposed under those circumstances.
   (2) Existing law makes a violation of the act subject to
administrative, civil, and criminal penalties.
   This bill would impose a state-mandated local program by imposing
these criminal penalties on persons who violate the provisions of the
bill.
  (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   (4) The Political Reform Act of 1974, an initiative measure,
provides that the Legislature may amend the act to further the act's
purposes with a 2/3 vote of each house and compliance with specified
procedural requirements.
   This bill, which would declare that it furthers the purposes of
the act, would therefore require a 2/3 vote.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 82033 of the Government Code is amended to
read:
   82033.  "Interest in real property" includes any leasehold,
beneficial or ownership interest or an option to acquire such an
interest in real property located in the jurisdiction owned directly,
indirectly or beneficially by the public official, or other filer,
or his or her immediate family if the fair market value of the
interest is two thousand dollars ($2,000) or more.  Interests in real
property of an individual includes a pro rata share of interests in
real property of any business entity or trust in which the individual
or immediate family owns, directly, indirectly or beneficially, a
10-percent interest or greater.
  SEC. 2.  Section 82034 of the Government Code is amended to read:
   82034.  "Investment" means any financial interest in or security
issued by a business entity, including but not limited to common
stock, preferred stock, rights, warrants, options, debt instruments
and any partnership or other ownership interest owned directly,
indirectly or beneficially by the public official, or other filer, or
his or her immediate family, if the business entity or any parent,
subsidiary or otherwise related business entity has an interest in
real property in the jurisdiction, or does business or plans to do
business in the jurisdiction, or has done business within the
jurisdiction at any time during the two years prior to the time any
statement or other action is required under this title.  No asset
shall be deemed an investment unless its fair market value equals or
exceeds two thousand dollars ($2,000).  The term "investment" does
not include a time or demand deposit in a financial institution,
shares in a credit union, any insurance policy, interest in a
diversified mutual fund registered with the Securities and Exchange
Commission under the Investment Company Act of 1940 or a common trust
fund which is created pursuant to Section 1564 of the Financial
Code, or any bond or other debt instrument issued by any government
or government agency.  Investments of an individual includes a pro
rata share of investments of any business entity, mutual fund, or
trust in which the individual or immediate family owns, directly,
indirectly or beneficially, a 10-percent interest or greater.  The
term "parent, subsidiary or otherwise related business entity" shall
be specifically defined by regulations of the commission.
  SEC. 3.  Section 84200 of the Government Code is amended to read:
   84200.  (a) Except as provided in paragraphs (1), (2), and (3),
elected officers, candidates, and committees pursuant to subdivision
(a) of Section 82013 shall file semiannual statements each year no
later than July 31 for the period ending June 30, and no later than
January 31 for the period ending December 31.
   (1) A candidate who, during the past six months has filed a
declaration pursuant to Section 84206 shall not be required to file a
semiannual statement for that six-month period.
   (2) Elected officers whose salaries are less than two hundred
dollars ($200) a month, judges, judicial candidates, and their
controlled committees shall not file semiannual statements pursuant
to this subdivision for any six-month period in which they have not
made or received any contributions or made any expenditures.
   (3) A judge who is not listed on the ballot for reelection to, or
recall from, any elective office during a calendar year shall not
file semiannual statements pursuant to this subdivision for any
six-month period in that year if both of the following apply:
   (A) The judge has not received any contributions.
   (B) The only expenditures made by the judge during the calendar
year are contributions from the judge's personal funds to other
candidates or committees totaling less than one thousand dollars
($1,000).
   (b) All committees pursuant to subdivision (b) or (c) of Section
82013 shall file campaign statements each year no later than July 31
for the period ending June 30, and no later than January 31 for the
period ending December 31, if they have made contributions or
independent expenditures, including payments to a slate mailer
organization, during the six-month period before the closing date of
the statements.
  SEC. 4.  Section 84202.5 of the Government Code is amended to read:

   84202.5.  (a) Any candidate or any committee pursuant to
subdivision (a) of Section 82013 which makes contributions totaling
ten thousand dollars ($10,000) or more in connection with an
election, including a runoff election, shall file a supplemental
preelection statement no later than 12 days before the election, for
the period ending 17 days before the election.  This statement shall
be filed with each office with which the candidate or committee
filing the statement is required to file its next campaign statement
pursuant to Section 84215.
   (b) This section shall not apply to candidates or committees
during any semiannual period in which the candidate or committee is
required to file preelection statements pursuant to Section 84200.5.

   (c) If a candidate or committee makes contributions totaling ten
thousand dollars ($10,000) or more in connection with an election and
all of those contributions are reported pursuant to Section 84200 or
84202.7 on or before the closing date specified in subdivision (a),
the candidate or committee shall not be required to file additional
statements for that period pursuant to this section.
  SEC. 5.  Section 84202.7 of the Government Code is amended to read:

   84202.7.  (a) Except as provided in subdivision (b), during an
odd-numbered year, any committee by virtue of Section 82013 that
makes contributions totaling ten thousand dollars ($10,000) or more
to elected state officers, their controlled committees, or committees
primarily formed to support or oppose any elected state officer
during a period specified below shall file campaign statements on the
following dates:
   (1) No later than April 30 for the period of January 1 through
March 31.
   (2) No later than October 31 for the period of July 1 through
September 30.
   (b) If a committee makes contributions totaling  ten thousand
dollars ($10,000) or more to elected state officers, their controlled
committees, or committees primarily formed to support or oppose any
elected state officer during a period specified in subdivision (a),
and all of those contributions are reported pursuant to Section
84202.5 on or before the time specified in subdivision (a), the
committee shall not be required to file additional statements for
that period pursuant to this section.
  SEC. 6.  Section 84203.5 of the Government Code is amended to read:

   84203.5.  (a) In addition to any campaign statements required by
this article, if a candidate or committee has made independent
expenditures totaling one thousand dollars ($1,000) or more in a
calendar year to support or oppose a candidate, a measure or
qualification of a measure, it shall file independent expenditure
reports at the same time, covering the same periods, and in the
places where the candidate or committee would be required to file
campaign statements under this article, as if it were formed or
existing primarily to support or oppose the candidate or measure or
qualification of the measure.  No independent expenditure report need
be filed to cover a period for which there has been no activity to
report.
   (b) An independent expenditure report shall contain the following
information:
   (1) The name, street address, and telephone number of the
candidate or committee making the expenditure and of the committee's
treasurer, and the number assigned to the committee by the Secretary
of State.
   (2) If the report is related to a candidate, the full name of the
candidate and the office and district for which the candidate seeks
nomination or election.  If the report is related to a measure or
qualification of a measure, the number or letter of the measure, or
if none has yet been assigned, a brief description of the subject
matter of the measure, and the jurisdiction in which the measure is
to be voted on or would be voted on if it qualified.
   (3) The total amount of expenditures related to the candidate or
measure during the period covered by the report made to persons who
have received less than one hundred dollars ($100).
   (4) The total amount of expenditures related to the candidate or
measure during the period covered by the report made to persons who
have received one hundred dollars ($100) or more.
   (5) For each person to whom an expenditure of one hundred dollars
($100) or more related to the candidate or measure has been made
during the period covered by the report and for each person who has
provided consideration for an expenditure of one hundred dollars
($100) or more during the period covered by the report:
   (A) His or her full name.
   (B) His or her street address.
   (C) If the person is a committee, the name of the committee, the
number assigned to the committee by the Secretary of State, or if no
number has been assigned, the full name and street address of the
treasurer of the committee.
   (D) The date of the expenditure.
   (E) The amount of the expenditure.
   (F) A brief description of the consideration for which each
expenditure was made and the value of the consideration if less than
the total amount of the expenditure.
   (G) The cumulative amount of expenditures to such person.
   (6) A list of all the filing officers with whom the committee
filed its most recent campaign statement.
  SEC. 7.  Section 87103 of the Government Code is amended to read:
   87103.  A public official has a financial interest in a decision
within the meaning of Section 87100 if it is reasonably foreseeable
that the decision will have a material financial effect,
distinguishable from its effect on the public generally, on the
official, a member of his or her immediate family, or on any of the
following:
   (a) Any business entity in which the public official has a direct
or indirect investment worth two thousand dollars ($2,000) or more.
   (b) Any real property in which the public official has a direct or
indirect interest worth two thousand dollars ($2,000) or more.
   (c) Any source of income, except gifts or loans by a commercial
lending institution made in the regular course of business on terms
available to the public without regard to official status,
aggregating five hundred dollars ($500) or more in value provided or
promised to, received by, the public official within 12 months prior
to the time when the decision is made.
   (d) Any business entity in which the public official is a
director, officer, partner, trustee, employee, or holds any position
of management.
   (e) Any donor of, or any intermediary or agent for a donor of, a
gift or gifts aggregating two hundred fifty dollars ($250) or more in
value provided to, received by, or promised to the public official
within 12 months prior to the time when the decision is made.  The
amount of the value of gifts specified by this subdivision shall be
adjusted biennially by the commission to equal the same amount
determined by the commission pursuant to subdivision (f) of Section
89503.
   For purposes of this section, indirect investment or interest
means any investment or interest owned by the spouse or dependent
child of a public official, by an agent on behalf of a public
official, or by a business entity or trust in which the official, the
official's agents, spouse, and dependent children own directly,
indirectly, or beneficially a 10-percent interest or greater.
  SEC. 8.  Section 87206 of the Government Code is amended to read:
   87206.  If an investment or an interest in real property is
required to be disclosed under this article, the statement shall
contain:
   (a) A statement of the nature of the investment or interest.
   (b) The name of the business entity in which each investment is
held, and a general description of the business activity in which the
business entity is engaged.
   (c) The address or other precise location of the real property.
   (d) A statement whether the fair market value of the investment or
interest in real property equals or exceeds two thousand dollars
($2,000) but does not exceed ten thousand dollars ($10,000), whether
it exceeds ten thousand dollars ($10,000) but does not exceed one
hundred thousand dollars ($100,000), whether it exceeds one hundred
thousand dollars ($100,000) but does not exceed one million dollars
($1,000,000), or whether it exceeds one million dollars ($1,000,000).

   (e) In the case of a statement filed under Sections 87203 or
87204, if the investment or interest in real property was partially
or wholly acquired or disposed of during the period covered by the
statement, the date of acquisition or disposal.
   (f) For purposes of disclosure under this article, "interest in
real property" does not include the principal residence of the filer
or any other property which the filer utilizes exclusively as the
personal residence of the filer.
  SEC. 9.  Section 87207 of the Government Code is amended to read:
   87207.  (a) When income is required to be reported under this
article, the statement shall contain, except as provided in
subdivision (b):
   (1) The name and address of each source of income aggregating five
hundred dollars ($500) or more in value, or fifty dollars ($50) or
more in value if the income was a gift, and a general description of
the business activity, if any, of each source.
   (2) A statement whether the aggregate value of income from each
source, or in the case of a loan, the highest amount owed to each
source, was at least five hundred dollars ($500) but did not exceed
one thousand dollars ($1,000), whether it was in excess of one
thousand dollars ($1,000) but was not greater than ten thousand
dollars ($10,000), whether it was greater than ten thousand dollars
($10,000) but not greater than one hundred thousand dollars
($100,000), or whether it was greater than one hundred thousand
dollars ($100,000).
   (3) A description of the consideration, if any, for which the
income was received.
   (4) In the case of a gift, the amount and the date on which the
gift was received.
   (5) In the case of a loan, the annual interest rate, the security,
if any, given for the loan, and the term of the loan.
   (b) When the filer's pro rata share of income to a business
entity, including income to a sole proprietorship, is required to be
reported under this article, the statement shall contain:
   (1) The name, address, and a general description of the business
activity of the business entity.
   (2) The name of every person from whom the business entity
received payments if the filer's pro rata share of gross receipts
from that person was equal to or greater than ten thousand dollars
($10,000) during a calendar year.
   (c) When a payment, including an advance or reimbursement, for
travel is required to be reported pursuant to this section, it may be
reported on a separate travel reimbursement schedule which shall be
included in the filer's statement of economic interest.  A filer who
chooses not to use the travel schedule shall disclose payments for
travel as a gift, unless it is clear from all surrounding
circumstances that the services provided were equal to or greater in
value than the payments for the travel, in which case the travel may
be reported as income.
  SEC. 10.  Section 89511 of the Government Code is amended to read:

   89511.  (a) This article applies to campaign funds held by
candidates for elective office, elected officers, controlled
committees, ballot measure committees, committees opposed to a
candidate or measure, and any committee which qualifies as a
committee pursuant to subdivision (a) of Section 82013.
   (b) (1) For purposes of this chapter, "campaign funds" includes
any contributions, cash, cash equivalents, and other assets received
or possessed by a committee as defined by subdivision (a) of Section
82013.
   (2) For purposes of this chapter, "committee" means a controlled
committee, ballot measure committee, committee opposed to a candidate
or measure, and any committee which qualifies as a committee
pursuant to subdivision (a) of Section 82013.
   (3) For purposes of this chapter, "substantial personal benefit"
means an expenditure of campaign funds which results in a direct
personal benefit with a value of more than two hundred dollars ($200)
to a candidate, elected officer, or any individual or individuals
with authority to approve the expenditure of campaign funds held by a
committee.
   (4) For purposes of this article, "household" includes the
candidate's or elected officer's spouse, dependent children, and
parents who reside with the candidate or elected officer.
  SEC. 11.  Section 91005 of the Government Code is amended to read:

   91005.  (a) Any person who makes or receives a contribution, gift,
or expenditure in violation of Section 84300, 84304, 86203, or 86204
is liable in a civil action brought by the civil prosecutor or by a
person residing within the jurisdiction for an amount up to one
thousand dollars ($1,000) or three times the amount of the unlawful
contribution, gift, or expenditure, whichever amount is greater.
   (b) Any designated employee or public official specified in
Section 87200, except an elected state officer, who realizes an
economic benefit as a result of a violation of Section 87100 or of a
disqualification provision of a conflict of interest code is liable
in a civil action brought by the civil prosecutor or by a person
residing within the jurisdiction for an amount up to three times the
value of the benefit.
  SEC. 12.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
  SEC. 13.  The Legislature finds and declares that the provisions of
this act further the purposes of the Political Reform Act of 1974
within the meaning of subdivision (a) of Section 81012 of the
Government Code.
